Daily quote by Keynesian economics

• Finally, the development of Keynesian economics and, after the war, its gradually increasing application changed the nature of the efficiency discussion. In true Hegelian fashion, capitalist instability and the socialist counterattack seemed to be synthesized: it seemed possible to have an economy that retained much of capitalist drive and initiative and yet gave room for the government to intervene to avoid at least the worst inefficiencies of unemployment and the idling of other resources. I accepted provisionally what seemed to be a widespread consensus in the euphoria of postwar economic growth. The state had an active role to play in maintaining effective demand and in dealing with the many imperfections of the market system revealed by theoretical welfare economics— the overcoming of market failures and monopoly and the realization of economies of scale. These interventions should take the form of relatively impersonal measures, taxes and expenditures, rather than detailed controls and direct regulation. The higher taxes meant that the government was automatically engaged in redistributing, and some of us felt that it should go much further.
  • Kenneth Arrow, "A Cautious Case for Socialism", Dissent (Fall 1978)